Jim Rogers Warns "Bernanke Has Set The Stage For The Fed's Collapse"

Tyler Durden's picture

With Bernanke's term due to expire in January, Jim Rogers warns Mineweb that the Fed-head will be remembered as "the guy who set the stage for the demise of the Central Bank in America. We've had three central banks in America. The first two disappeared. This one's going to disappear too in the next decade." With precious metals, bonds, and stock markets obsessing over Fed actions, Rogers says, in the next 10 years or so, "People will realise that these guys have led us down a terrible path," and collapse is "not a possibility," he adds, "it's a probability."

Via Mineweb,

100 years ago you could not have named the head of most central banks in the world,” Rogers told Mineweb. “Now they're all rockstars.” Gold and equity markets have increasingly been locked in Fed-watch mode in 2013, obsessing over when or whether chairman Ben Bernanke would taper the bank's vast bond buying scheme.

Rogers however, an ardent free-marketeer, says the market's narrow focus on the Fed reflects the bank's rising and now extreme interference in global markets, propelling the likes of Bernanke in the US and Mario Draghi in Europe to near household name status.

“Everybody knows them,” he says, “but that's only a phenomenon of the last 20 years, when central banks have been pumping money into the markets and everybody's singing hallelujah.”

With Bernanke's term due to expire in January, Rogers says he will be remembered as “the guy who set the stage for the demise of the Central Bank in America. We've had three central banks in America. The first two disappeared. This one's going to disappear too in the next decade.”

“It's not a possibility,” he adds, “it's a probability. People will realise that these guys have led us down a terrible path. The Fed balance sheet has increased by 500 per cent in the last 5 years and a lot of it's garbage.”

Unlike the wider market, Rogers does not set great store by the Fed's decision shortly before Christmas to taper its bond buying measures from $85bn per month to $75bn. The announcement put pressure on gold and drove US equities to a new all-time high, in what Rogers views as a relief rally.

“The US went up because people said, 'Now it's done, we don't have to worry anymore.' But somewhere along the line, markets are going to start suffering. They'll taper until the markets start hurting and then they'll panic and loosen up again. They've got themselves in a terrible box.”

It'll turn into a bubble or a very inflated situation, but eventually the markets will say, we're not going to take your garbage anymore, whether it's treasury bonds or currency.” Inflation, Rogers says, has only been kept in check in the US by the country's shale gas discovery, putting a “dampener” on energy prices.

Whist Rogers views mass money printing as untenable, in the short term, he expects equities to turn parabolic, rather than collapse.

“The Japanese Central Bank has said that it will print unlimited amounts of money,” he says. “That's their word and they're doing it. When people look back 20 years from now they'll say that's what killed Japan, but in the meantime, all the staggering, unlimited amounts of money have got to go somewhere and it's going to go into Japanese shares.”

Rogers prefers gold over gold mining shares and divisible coins over bullion, but says “there's nothing in precious metals that I'm tempted to buy at the moment.” Indian import tariffs he views as the single biggest drag on the gold market currently.

“They've got a huge balance of trade deficit and the three largest parts are oil, gold and cooking oil. They cannot do anything about oil or cooking oil, so they're attacking gold, blaming their problems on gold. Gold has not caused their problems, gold is a symptom of their problems, but politicians are pretty simple-minded people and they look for the easy answer.”

For early 2014, Rogers is therefore long inflatable equities and neutral on gold, but longer term, he expects to short junk and government bonds and is ultra bullish on gold. “Gold will become one of the only refuges around,” he says.

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El Oregonian's picture

“Gold will become one of the only refuges around,” he says.

Self reliant Family-survival and weaponized multi-strategic, multi-offensive/defensive compounds.

Get Prepared/Stay Prepared

OwnSilverPlayMusic's picture

Grow your own food, filter your own water and protect what is yours.  That's all you can do.

Dr. Destructo's picture

Sure you can protect what's yours, but it all depends on where you live. I live in a city, so when economic collapse ensues I'm going to be outnumbered, outmanuevered, and outgunned by both looters and the .Govs. I'm going to stay mobile. I have a three day pack full survival essentials (a way to filter water, trap food, construct shelter, and mylar blankets to block infrared), a topographical map, an exit strategy, and several like-minded people in a network with a general plan to GTFO of Dodge and into the wilderness.

The looters can have my stuff, but it's the .govs I'm worried about since they want to take away my rights AND my stuff.


Leonardo Fibonacci2's picture

His name is Bernocchio and he is a liar cause his nose keeps on growing me than the QE.

derek_vineyard's picture

jim is going to get caught in the equity collapse.....he's short term bullish and invested----when the last bears go long---watch out below

another humble guy letting his ego push him into the parabola

Cult_of_Reason's picture

Re: "jim is going to get caught in the equity collapse"

I agree, Jim (a momo chasing bear) is ignorant about history and does not realize that all equity bubbles burst regardless of continued money printing , historically every speculative frenzy ended in financial collapse  (e.g. Mississippi Bubble and John Law)

Many (including the Fed) don't realize that money printing reduces the multiplier, as a result, it is somewhat inflationary in the beginning, but later it is deflationary when M2 expansion (we have a fractional banking system) cannot keep up with monetary base expansion (e.g. US Great Depression and Japan).

Multiplier = M2 / Monetary Base

GDP is a function of Multiplier and Velocity (or turnover of M2); but the Fed (money printing) can only increase the Monetary Base (and lower the multiplier that is deflationary)

El Vaquero's picture

You had better practice that trapping and eating what you trap if you're going to rely on it for survival.  If you already have, carry on. 

MeMongo's picture

Understood! But everytime I think of bugging out, I think of how nice it is to come back home from camping for 3 days. I'm bugging out if, and only if the roof is on fire!

Boris Alatovkrap's picture

Keeping your hands off Boris' copper!

americanreality's picture

Your middle name must be With.  Act is getting old.  

kaiserhoff's picture

Art, beauty, and humor are often in the eye of the beholder.  If that doesn't work for you, try this.

Intelligence is invisible to those who do not possess it.


Bendromeda Strain's picture

Talk about something going on too long - a Jerry Garcia live "jam" comes to mind...

MeelionDollerBogus's picture

well, you could move and never go back to the city.

OR you could so something dangerous to learn: book some vacation days and live as a homeless person.

I shit you not.

The survival lesson you'll learn in the city of your choice will teach you all you need to know about the mad-maxing of city life in the collapse. For them it's already collapsed.

I did this for a bit in Vancouver. Yes, this is a chickenshit move because the winters there aren't very cold but then again, I did say of your choosing. Once the collapse happens such mobility will not be so easy. Get there early.

kaiserhoff's picture

Interesting approach, especially for those doing magazine articles or creative writing projects for lefty professors, but reality intrudes.  Homelessness in Vancouver or Austin might be a mild inconvenience when it involves .25 percent of the population.  When everyone is scared and hungry, the rules will change.


Bendromeda Strain's picture

As Ferfal documented in BsAs when Argentina collapsed, the Gummint will direct its resources to propping up the cities. It is the uniquely American suburbs that will be neglected. When the strip malls close and outlying markets are slow to be replenished, then that will be the real zombieland. Rural folk will likely do best, city next best, with metro suburbs "living in interesting times".

RafterManFMJ's picture

I keep my gyrocopter on ready 5 and can get 200 miles outside of my small town on one tank.

Roman candles strapped to the underside, and speakers cranking out Ride of the Valkyries will suppress hostile yokels.

TheFourthStooge-ing's picture


Roman candles strapped to the underside, and speakers cranking out Ride of the Valkyries will suppress hostile yokels.

Say, that is a nice touch.

samcontrol's picture

fuck and I am about to buy the agq option you mentioned.
I am really going full retard.

First ,
Vancouver ain't exactly dry in the winter so i call bs on your story. You probably slept in the street after getting loaded and count that as homeless.

Second , if we were to mad max,,, my vacation option is way better than yours, I go to palace resorts in Quintana Roo twice a year, while I have the money ,the health , my dick up with my hot fiancé , the time (no kids yet), and other fun loving tourists around that do not look like zombies yet...

Third, " once the collapse happens...". , you don,t know that......
not that I really would mind., I despise most of my neighbors ... and I would just love to use my new mag lite 3 D Led, probably best preper light out there.it is like a Jedi laser ...i won't even use the butcher knives or other weapons.,.... anyone can have imagination buddy.

MeelionDollerBogus's picture

oh it's much more chickenshit than that.

I did it in the summer.

I know, I know.

I'm not sure what I'd do in the winter but at least it wouldn't be a foot deep of ice-slush.

By all means if you can afford to go some place nice not to return, go for it, but if you don't toughen up you'll find out money is only a proxy, it isn't actual defensive measures or offensive weapons, much less a strong immune system or legs fit for running.

Just isn't. Sometimes the proxy will do, sometimes it won't. No matter how poor or rich a person is.


Dinero D. Profit's picture

Vancouver, if itself survives, is a pretty good place to be when the SHTF because it is on the border. 

Smuggling all sorts of goods and people will become a honborable and profitable trade.   

Dinero. D. Profit


Dinero D. Profit's picture

Vancouver, if itself survives, is a pretty good place to be when the SHTF because it is on the border. 

Smuggling all sorts of goods and people will become a honborable and profitable trade.   

Dinero. D. Profit


MeelionDollerBogus's picture

I suspect as much too. Ports for smuggling, borders for escape, mountains for hiding out (watch out for mountain lions!), clean drinking water (until fukushima) right from the streams (mountains)... a lot going for it.

A friend of mine swears he did this. May be useful to know. If you're going to be in a place a little while, piss in a circle (woods, mountains). Purpose: marking your territory. My friend swears he was within easy spotting distance (and seen) by a mountain lion and was left alone because he did this in BC.

Race Car Driver's picture

>I have a three day pack full survival essentials ... with a general plan to GTFO of Dodge and into the wilderness.

A general plan?

Where do you think you're gonna go where other's don't already have dibs ... and guns? Do you think you're just gonna drop out of the sky somewhere and live in the big country? LOL!

Unless you're gonna be hiking into huge wilderness, there will be locals who don't know you, don't like you, don't want to and will know you're not from around there - and they will run you out, at the least. G'head, test it. Go to some small town in bum-fuck with your bugout kit and give it a test run. And that's without some emergency creating chaos. Think about what the cops are being trained to do in the upcoming disaster? Think about all the new gear they have and are just itching to use?

"This land is your land, this land is my land ... " ain't gonna cut it with officer Friendly. It's his turf and your an intruder.

If folks don't move out of the cities and into a new community now, while they can, then they fully deserve what they get.

Stupid city monkeys with their hand in the jar, holding on to crumbs and rotted fruit, waiting for change to come to them before they're forced to move. LOL. What a recipe for disaster.

kliguy38's picture

One thousand percent correct........rural areas will be heavily defended from interlopers or worse............they will shoot first and ask questions later in a true breakdown socially. Read Patriot by John Wesley Rawles.............fictional but very helpful

Socratic Dog's picture

Very helpful.  For example, let us know that the ones we REALLY have to concerned about are the awful Commies (baby eaters all) and the bikers.  Yeah, so fucking useful.

Peurile, delusional wankfest.  But I read it.


klockwerks's picture


That is exactly what we will do and our tribe plan calls for shooting first, have hole ready and be ready for the next one. Sounds really bad but if they come out this far in the country they are in bad shape and it just boils down to them or us. Hope I never have to see it but sure seems like it is getting very close.

TheSkipper1967's picture

I agree because I live in one and have like mined neighbors.  Started deer hunting and an take a deer to roasts and grinder the same day I kill em.  I am bugging in and making my place look like condemed farmhouse.  Already looks pretty spooky for anybody looking to break in.  Going to make my place like a roach motel.  Roaches come in but the dont leave.  My order of importance.  Guns, ammo. food, water, misc supplies, neighbors, PM. 

fedupwhiteguy's picture

i'm making my move this february. i don't want to be in the burbs when the system breaks. we're looking forward to starting our self sufficiency.

Future Jim's picture

"I have a three day pack ..."

Cool. What are you doing about an EMP, which could destroy any circuitry, such as in batteries, falshlights, solar tech, etc.?

401K of Dooom's picture

Thank you.  That is the most succinct and sage advice I have seen here at Zero Hedge ever!

XitSam's picture

Tell me, what is "multi-strategic"?

DoChenRollingBearing's picture
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Ralph Spoilsport's picture

cicada2014 sez: keep wearing that insect shirt

DoChenRollingBearing's picture



DCRB sez:












NoDebt's picture

My hex is a little rusty.  Care to translate?

DoChenRollingBearing's picture

It is a dialect of Bearingish.

It means: "Hey, NSA, catch that and paint it green!"

NoDebt's picture

OK, super.  Could you now translate your translation?

DoChenRollingBearing's picture

My understanding that quotation came from am American POW held by the Chicoms during the Korean War.  He was being interrogated.  He farted and told them to catch that and paint it green.



Actually that latter set comes from here:


Have fun!

NoDebt's picture

Never heard that one before.  Hope it's true.  Worth a chuckle.

Should we expect your future posts to be in hex as well?  (Which would be highly annoying and only slightly badass)

I only ask so I can decide if I need to prepare myself with the appropriate translation tools.

DoChenRollingBearing's picture

I just heard that years ago, I don't know if it's true re the POW and green...


Re future posts, naah!  Just having fun.

Short and succint this time    <-- Type exactly that


^---- is the output

Here: http://www.xorbin.com/tools/sha256-hash-calculator

Just having fun here is all.

LetThemEatRand's picture

You get top bunk at camp FEMA for that series of posts.

kaiserhoff's picture

Well said, Rand.

Let's not diss the officer's mess.  By then we will be thankful for all small pleasures.

Offthebeach's picture

Just finished reading The Orphan Masters Son.
Good yarn on Country And Gardens lifestyle in N. Korea.

Also, met Col. Nick Rowe at his fresh air camp for outdoor enthusiasts.

I do winter pack hiking in N England for over a week. To 5 deg F is fine. Below zero gets uncomfortable. Wind is big and should be sheltered from. Water and thirst is big. Wet is very bad. By thd end of a week, hygiene starts decaying.
After a few days a shack or cave is luxury. Always have a hard complex book. Something you need to read three times.

I could go on..

saveandsound's picture

Hashes just go in one direction. You can't translate them back. That is even true for MD5, however there are collision attacks.

Please don't copy&paste any more hashes.